Motorola CEO defends XOOM tablet’s $800 price tag

At Mobile World Congress on Wednesday, Motorola Mobility chief executive Sanjay Jha came to the defense of the company’s decision to price its first Android tablet at $800. The Motorola XOOM will be a flagship Android tablet when it launches in the near future, and Motorola has slapped on a flagship price tag. With 3G connectivity, the 32GB XOOM will be $70 more expensive than an Apple iPad with the same amount of storage. “We felt that our ability to deliver 50Mbps would justify the $799 price point,” Jha told reporters at Mobile World Congress. “It is 32GB with 3G and a free upgrade to 4G. Being competitive with iPad is important. We feel that from the hardware and capabilities we deliver, we are at least competitive and in a number of ways better.” Of note, the 3G XOOM will reportedly also require users to purchase at least one month of cellular data service in order to unlock Wi-Fi connectivity — ostensibly adding another $30 onto the price of the XOOM and making it a full $100 more expensive than the comparable iPad model. The Wi-Fi-only XOOM will be priced in line with the comparable iPad model at $600.

I’m not a fan of that $800 price tag…. But $600 for the 32GB Wifi verison is PERFECT pricing. Not sure why folks would want anything else. People always complain about not wanting a contract which means everyone can IGNORE the $800 version and get the damn WIFI version.

Peter

The question is when the WiFi only version will come out. It won’t be for a while I would bet.

Michael Scrip

Exactly….

Since Verizon has their grubby little hand all over the Xoom… I bet they will insist that their 3G Xoom be alone for at least 4-6 months.

Tim242

When? In 3 months?

Anonymous

They haven’t announced any details on the launch of the wi-fi only version.

Tim242

That’s my point. Who knows when it will come out. It won’t be for a while.
Verizon will have a chance to get their money first.

Anonymous

I don’t think it’ll take that long… IF you realize the Sammy didn’t really talk about Galaxy Tab wifi only version… This already has US PRICING. It’s ready to go.

http://www.twitter.com/slinky317 slinky317

@perspectively: They haven’t technically announced any details on the launch of the 3G version, either. It’s all rumors and speculation right now.

Droidzzzzzzz

I am a big fan of this device…but to be 100% honest…why would I buy this when I could buy a playbook for a)cheaper b)better specs c)QNX d)TAT

I mean, im android all the way, but how can anyone ignore what the playbook has in store?

Anonymous

Apps. They make it break a tablet. I really like the Playbook too but I can’t just leave all my android apps behind.

Droidzzzzzzz

Playbook will be able to run Android apps. Have you not been seeing everything being posted about that in the past week?

Michael Scrip

@Droidzzzzzzz

Yes… all those Android tablet apps…

;)

http://twitter.com/absolutefiction Absolute Fiction

Not just fail.
You wanna bet they lower the price withing 2 months of launch?
Anyone?
:-)

A5tod21

Sorry… FAIL. DROID DOESN’T

Tim242

Sorry… You Fail. This isn’t a DROID.

Anonymous

Actually it is running DROID OS 3.0 so it is a droid. I’m not sure where you got your info, but it’s not running iOS or webos or whatever RIMs likely stupid oS will be called. It’s running DROID.

Anonymous

Its running Android.

Droid is a phone made by Motorola

Vxk

I didny know about that Droid OS you talking about. If you are going to act like that. at least know what you are talking about

Hilarious how all of these people fell for Norm. Norm=Greatest troll on DROID ever. Btw DROID DOES!

Anonymous

It’s running ANDROID 3.0. Just because it’s running Android OS doesn’t make it a Droid. The Droid name is owned by Lucas Ent. and licensed to Verizon for whatever phones they want to apply it to. There are a lot of Android phones out there, but there’s only a small number of Droid phones.

VZGUEST

Norm = pwned!!!

ifan

agreed…i’ll take a playbook instead

Bluelou65

apple had a price fail with their first iPhone and issued rebates i believe (was a long time ago so i might be fuzzy on the details). It’s okay to admit it and lower the price; hell at this point it might create more buzz for the tablet.

Anonymous

Except the difference was that the iPhone was selling out at that price. . . the device was sold out all summer, and sold 1 million units in 74 days DESPITE the high price tag. Then, last year, the iPad sold 1 million units in its first month.

Let’s see how many Xooms are sold at $800 in its first month. I’m guessing less than 100K, perhaps far less.

Anonymous

Pass…

http://www.facebook.com/people/Justin-Hart/700059493 Justin Hart

complaining that you have to buy a month of service for the 3g device is like complaining that you have to buy gas for your car. If you want the 3g service you will HAVE to pay for service. If you don’t want the 3g service buy the wifi only model that doesn’t require you to pay for 3g service … If you buy a 3g ipad from apple does aT&T magically give you free 3g service for the device? no you pay for it… Otherwise yes i feel the price on the device is a little steep. I think iPad pricing is steep as well i don’t see paying the price of a laptop for a semi useful tablet, but then again i don’t personally have the use for the tablet, my uses direct me more towards a laptop that can do what i need.

Tim242

I think you totally miss the point. The wifi only option won’t be our for a while. Some people will opt to buy this version. Nobody is wanting free 3G. It is stupid to force a month of 3G on people, just to activate wifi. You can’t possibly think that’s ok! That would be like buying a tv just to watch movies on, but being forced to pay for a month of cable.

Lhymes

they aren’t complaining about having to pay for the service. they’re complaining that the device’s wifi feature is gimped until you pay for 3G the first time. your car’s radio isn’t disabled till you fill up at the gas station the first time. yes, typically if you’re buying the 3G-capable device you’re going to pay for a data plan, however, I have clients that buy the 3G iPad with the intention of turning on the 3G only for vacations, sometimes waiting months before they enable it for the first time.

Tim242

I think you totally miss the point. The wifi only option won’t be our for a while. Some people will opt to buy this version. Nobody is wanting free 3G. It is stupid to force a month of 3G on people, just to activate wifi. You can’t possibly think that’s ok! That would be like buying a tv just to watch movies on, but being forced to pay for a month of cable.

Busta

However, If you buy a 3g iPad, apple nor AT&T make you buy a months worth of 3g. its True you can just wait for Wifi only opition but for those that like to keep their options open they should be able to buy a >>> 3g device and not have to pay the 3g (until ready) yet still have wifi as an option which the Xoom does not<

Anonymous

No one is arguing about paying for 3g service.. There should be no reason why they require you to buy service before unlocking wifi. I bought the iPad 3g when it came out did i get 3g service on day one no. Did i get 3g service on a road trip 2 months later yes. Why should someone be forced to buy service when its not needed at the time just to fully use the device. Maybe its that motorola knows the device is crap and wants to lock you into a contract with verizon.

Namarrgon

They should’ve priced it at $829 with a free month of 3G, would’ve gone down better.

Anonymous

the fact that the CEO has to defend it … doesn’t bode well. hah.

Anonymous

Yeah, it says that media and people knocking the price are generally stupid, because they don’t know how to make valid comparisons.

http://twitter.com/livingbasehead Shelton

Yes people are generally stupid, but those generally stupid people are the ones buying your product. and I dont know about you but if someone says Pad Im thinking ipad or that someone is having there period and I dont want to hear about it. So why on earth motorola thinks a more expensive less hyped device would attract me is beyond me.

Ohohmai

Totally agree, anytime a coprorate head has to defend the pricing, its an indicator that they may be afraid of the price as well, but are unable to reduce it initially due to costs or margin requirements. Either way, 800 bucks isnt going to move a ton of units, at 499 they could really well with this.

http://pulse.yahoo.com/_4WG2UI3ALEVUL2F7JR4KFWAE74 Myk

So can I get one that only does 25Mbps for $400?

Anonymous

Hello Moto. Cya Moto

KidColeco

People tend to forget there competing against a first gen iPad that will drop in price when the second gen comes out shortly after the Motorola is released. The higher price tag will not fly with the average consumer. iPad 2 will continue Apple’s dominance in the tablet market for those that can afford the higher end. Those whom can’t afford either Motorola’s XOOM or IPad 2 will stick with the lower price IPad.

Unless Apple pulls a pretty significant rabbit out of its hat, the Xoom will be more than competitive with the iPad 2, and is far beyond the original iPad. $800 is too much for me (wifi only, thanks), but the price is still competitive.

http://twitter.com/ecoles ecoles

They will probably end up having to adjust pricing just like the galaxy tab did. Google/ HTC/ Motorolas timing is horrible. I walk into a verizon store and I only have one awesome phone to choose from…Iphone…Where is the thunderbolt …where is the release date for the bionic….get it together moto

Cuzkevsaidso

Preach!! Absolutely correct. Nothing more to add.

Voicunebunu

What the Xoom (and Android in general) doesn’t have, is the polished apps available for iOS devices, which arguably means that this tablet has fewer features than an iPad. At the end of the day, Apple understands that its not all about GHz and dual-cores and lots of RAM. The damned thing either works smoothly, or it doesnt.

Shouldn’t then Motorola price its tablet lower than the comparable configured iPad?

Anonymous

I love how people use the word “polished”. What does that even mean? Simple? Shiny? Cute? Did the iPad have all those “polished” apps when it launched? Obviously the XOOM won’t either. It will though, and from what I’ve seen in some game previews, the level of detail on the XOOM is FAR greater than the same game on the iPad. I just use games as an example, since that is what all the blogs tend to cover first.

There is no iPad that is comparably configured, unless you solely go by storage, which is obviously ridiculous.

Anonymous

Being a Verizon DROID expert I have to know the competition and the iPad actually had quite a few optimized apps to start vas of right now the DROID XOOM has few if any. However it is open and free which means apps will be created out of thin air like on DROID phones.

http://www.twitter.com/slinky317 slinky317

Really? What polished apps are you referring to here? Because the iPad doesn’t have widgets, a front-facing camera, or an SD card slot. Those are MEASURABLE features, not just the ever-so-vague “polished apps.”

Dario69

Polished apps as in 3rd party apps that extend the life of your device. I agree with the original poster. Enjoy your $800 tablet with limited software support compared to the competition. Sorry, but the last time I checked the iPhone App store is killing the Android market. Even Google admits their market sucks. And this is with Android phones which the last time I checked is now outselling Apple. I am sure the tablet selection is going to be even worse. Yes, enjoy your pricey hardware, that is all you are going to get.

http://www.twitter.com/slinky317 slinky317

“Polished apps as in 3rd part apps that extend the life of your device.”

Once again, way to be completely vague here. What apps, specifically, are you referring to?

Besides, your point is moot because apps can always be created. Your original iPad will never have a built-in SD card reader or a front-facing camera.

Bobdonhim

I love how every Apple lover goes back to the “more apps” defence because they don’t hold a candle specs wise. Counting 55 fart apps and a Billy Mays soundboard as apps is just retarded. Apple has 195000 useless apps and maybe 5000 useFUL apps.

Anonymous

No one cares about widgets..Why do i need a big analog clock. The time is already displayed in the status bar. Why do i need constantly updating weather draining by battery? once i check the weather once in the morning I already know the days weather..

http://www.twitter.com/slinky317 slinky317

Referring to widgets as nothing more than the analog clock and weather really shows that you don’t use Android and you have no idea the usefulness and abundance of widgets. Most good apps have them and they make it so you don’t always have to load the app, for example you can play music right from the homescreen. Additionally, widgets will be improved in Honeycomb so you can display things like your Gmail messages without having to load the app.

Anonymous

I am very disappointed in the pricing. These guys are trying to maintain as close as possible the huge profit margins of mobile phones and it just isn’t going to work well, in my opinion. At $800, it is a niche product for upper-income people who already have other computers. Lower income folks will pick a netbook or even a full fledged notebook for less. They have to price it to the device’s abilities and without a desktop quality browser and without the quality apps of Apple, they have to make the Android tablets more attractive on another front, and that is pricing. The more people that have them, the more developers will build for them, the more attractive the platform will be to users, and the ability to deliver higher quality and higher priced devices will develop. Toyota used to be looked at as a joke, not it is the largest automaker in the word – as an example. That, or, the Honeycomb OS is so awesome that everyone will want want…. doesn’t seem that way, but who knows.

racker

i would have just eaten the $70 and made it match ipad pricing, grabbed market share then made up the difference elsewhere down the road once the product is proven and popular. In fact I would have gone 10% less than the comparable ipad.

tablets are not phones, they’re not a “need” but a “want” with most people. The apple ipad is great but its only great because apple has created an emotional connection with John Q Public. Moto has not and a higher price will not help.

I also agree with the commenter (barrist) who said that the CEO defending the higher price is not a good strategy.

http://twitter.com/endlessct9a John C.

The fact that a response regarding the price was even made is an admission by Motorola that they’re already foreseeing a pushback from consumers (and probably retailers).

http://twitter.com/ajac09 Anthony Evans

I wil be passing not worth the money may wait on the rumored playstation tab

Anonymous

No price is to high for Android. It’s just the way it is!

Anonymous

I’m going to have to agree. This thing is on par with current MacBook pros and is much cheaper. This DOES everything and more.

Anonymous

I think the more important part of the interview was the fact that Jha mentioned Google’s Music and Video service when talking about “the ecosystem”. Neither of which Google had confirmed themselves.

I don’t need anyone to justify the $800 price tag. Personally, I can easily justify a price $71 higher than the 32GB 3G iPad, when you’re getting higher resolution, four times the RAM, three times the processor, front and rear cameras, a tablet-optimized OS, HDMI out, USB, LTE upgradable (for free), and you can add more storage.

Apple lovers will of course bring up the apps, but they’re obviously coming for Honeycomb as well. We’ve already seen quite a few, and Honeycomb isn’t even officially out yet. Those same people will say “the average person doesn’t care about specs”. I’m not the average person, and if you’re reading this on BGR, you probably aren’t either.

This is the top of the line Android tablet, people that thought it should be priced competitively with the 16GB Wi-Fi only iPad, were delusional.

Anonymous

Don’t forget that in addition to the data service fee, Verizon also charges an “activation” fee, which drives the cost up even more. Oh, and if you ever want to reactivate the 3G service, you have to pay a reconnect fee.

As far as tablets go, AT&T kills Verizon on pricing. No fees or taxes other than the data cost, and no overages. Even if you cancel mid-plan you still get to use your remaining data until it is consumed or the 31st day arrives.

Anonymous

Here you are again, smoking crack as usual, and not doing any research.

1. Best Buy made up the reactivation thing, as it directly contradicts Verizon’s own policy regarding activation fees. You pay one activation fee, and that is it.

Early adopter tax is a terrible direction. These oems need to compete on cost as well as functionality. Outpricing the your competitors is not a sounds business plan.

http://twitter.com/cefranco2 Carlos Franco

My issue with the pricing is the reason he’s giving now, I didnt think anything of it until he said “We felt that our ability to deliver 50Mbps would justify the $799 price point”

So…is Moto going to guarantee 50 mbs down 100% of the time???????

Anonymous

While it’s true that people could (and probably should) wait for the WiFi version, there’s a part of me that says it’s just not cool to force someone to essentially sign a 1-month contract when they’re buying an unsubsidized device. Also, I have a feeling that most people who buy the 3G will actually be doing so for the 4G upgrade. The cynical side of me says the carriers are doing this for that exact purpose – get a free month of free 3G billing that most people won’t even use.

Xoom xoom xoom!

I heard a release date is on the 24th? Kind of want… But with that price I guess I can wait until it becomes obsolete to buy one

Bill

I bought a netbook for $250. It does more than the tablets, but doesn’t have the “cool apps”. Oh well, I can run netflix on it.

There’s only one viable android tablet now, and you have to root/install honeycomb yourself.

Vxk

Still not full. It is just an image from SD card. If they get it working well and fully. I probably just get that

Anonymous

Here you are again, smoking crack as usual, and not doing any research.

1. Best Buy made up the reactivation thing, as it directly contradicts Verizon’s own policy regarding activation fees. You pay one activation fee, and that is it.